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misappropriation theory  

Definition

  • Misappropriation theory is one of the more expansive rationales that the U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Justice (DOJ) have used in insider trading prosecutions in recent decades. Under this view, an individual may be liable for making a securities transaction on the basis of material, nonpublic information that he or she misappropriated in breach of a duty owed to the source of that information. [Source: Encyclopedia of White-Collar and Corporate Crime; Misappropriation Theory]

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https://concepts.sagepub.com/social-science/concept/misappropriation_theory

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